Business Change and Performance Analysis

This assignment delves into the critical aspects of business change management and performance assessment. It examines the influence of organizational changes on employees and highlights the importance of considering their well-being. The analysis also covers essential business factors such as competition, customer behavior, industry trends, demographics, economic conditions, political landscapes, social environments, technological advancements, and general environmental shifts. Moreover, it outlines a performance monitoring framework with specific goals, timeframes, and review mechanisms to track the success of implemented changes.

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Student Name
Course Name
Date

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I choose on Caffe Finix shop located in Stratford around the Stratford College and the
Westfield Shopping Centre. It was opened way back in 2009.
It famous for its daily necessity for providing services to coffee addicts as they get away from
the daily boredom. They meet fiends and a couple of people during the sessions. Some people
read the books while in there as others stare on the screens, all aimed to relief from the daily
stress and boredom. It is owned by Mr. Khan, a business man who has got an experience for over
17 years now. The coffee shop is 1500 square foot. It rises up to 25000 sterling pounds with
about seven employees. The shop provides tea, coffee and breakfast mostly to Stratford College
students.
SWOT ANALYSIS
The firm has the capabilities and resources to keep it in business. Basing on SWOT, the first step
of planning that helps investors to make sound decisions in focusing to the key issues. SWOT is
the only tool that company officials can use to plan ahead or in formulation of the strategic plan.
Itis about the Strengths, Weaknesses, Opportunities and Threats of the firm in question. It is
used for the internal business analysis as well as the external analysis for the inclusions like the
opportunities and threats re from the outside part of the business. SWOT is used in marketing
because it is easy, and intuitive. It gives useful information to help in matching the company’s
resources and its capabilities to the environment of operation, more specifically the competitive
environment.
Strengths
It is about the areas or aspects of the firm or any business in place where the firm does better.
They are the resource advantage in relation to the competitors and the market needs available in
the domains of the business. It is the opportunities that gives advantage to the firm in
competition for a better share in the market .It is what provides the business with comparative
advantages in the entire market .They are the strengths that arise from the resources of the
business and the competencies available and within the access of the firm.
Examples of Strengths enlisted by some firms to provide evidence on strengths.
Company Strengths
Apple Innovation of product
Tesco Broad range of product
Coca-Cola Stronger brand name
The following are the strengths of the Caffe Finix Shop

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It has a broad product range
Excellence in fresh, quality food and coffee
Good business location along high street and around shopping centers
Nice reputation amongst its customers
Ever growing sales turn over
Weaknesses
They are the inefficiencies, limitation deficiency in a business or say the competencies relative to
the competitors which make the firm to appear in effective.
The Caffe Finix has the following weaknesses
1. Weak food sector in provision as compared to others
2. Most brand names for it business are not known all over
3. Expensive rent
Opportunities
They are aspects of the environment which a firm can take advantage of or capitalize on to
flourish further in business. The firm can only succeed depending on whether its strengths its
opportunities in the environment are many and viable and can only be utilized fully by the firm
for it has opportunities to exploit. The following make up the Caffe Finix Shop opportunities
1. Selling of the brand name to earn profit through carrying out franchise businesses which
is way easier to start.
2. Investing more capital in the Unite d Kingdom for the UK market has a growing market
for sandwich shops which is also growing at an exponential rate
3. Provide the competitive price in cases of directly contracting or simply investing in the
developing nations
4. Being opportunity cautious and working on seeing more opportunities and market niche
to conquer.
Threats
Threats are the aspects in the business environment which aim at hindering the firm from
achieving its objective. An environmental threat is a challenge posed by an un favorable trend or
development that would lead in the absence of defensive marketing action, to deterioration
insales or profit. Threat should be classified according to seriousness and probability of
occurrence.
They include the following

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1. Government new policies and taxations
2. Political instability for instance wars
3. Competitors
Caffe Finix Profit and Loss Account for the year ended 29th April 2015 and 29th2016 fiscal years.
2015 (Sterling pounds) 2016 (Sterling Pounds)
Sales 120000 200000
Cost of sales 80000 150000
Gross Profit 40000 50000
Overhead costs 10000 15000
Net Profit 30000 35000
Caffe Finix Balance Sheet as at 30th May 2015 and May 2016 Fiscal years
2015 (Sterling Pounds) 2016 (Sterling Pounds)
Fixed asset 15000 12000
Current asset
Stock 7000 18000
Debtors 12000 36000
Bank 1000 0
20000 54000
Less current liabilities
Creditors 6000 15000
Bank overdraft 0 10000
Working capital 6000 25000
Net assets 14000 29000
Financed by capital 29000 41000
Opening capital 22000 2900
Add net profit 30000 35000
52000 64000
Less drawings 23000 23000
Closing capital 29000 41000

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Liquidity ratio: in order to analyze the company profitability, we are required to put in
consideration of a number of ratios, the leverage ratios, the profitability ratios and others that are
going to appear according to the scenarios to unfold.
Current ratio = current asset / current liability
2015 2016
20000/6000 54000/25000
=3.33 times =2.16 times
In 2015 company could pay their liability more than three times use their current
asset. In2016 company used their working capital efficient way. Company still pay their current
twice byusing current assets. Conventional wisdom has it that on ideal current ratio is 2 but the
company has surpassed the wisdom.
Quick ratio/acid test=Current assets-Inventory/current liabilities
2015 2016
=20000-7000/6000 =54000-18000/25000
=2.17 =1.44
In 2015 company paid its liability twice by using current asset .These is an
improvement on the side of the firm but an indication that the company has not used the capital
out lay in the company well in the base year 2015 . The recommended quick ratio should be 1.
The ratios from the calculation deviate from the norm.
Asset usage:
Working Capital Turn Over = Sales Revenue / Net Working capital
2015 2016
WCT= 120000/14000 200000/25000
=8.57 =8

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2015 2016
Profitability ratio:
ROCE=(Profit before investment/capital employed)*100
(30000/52000)*100 35000/64000
=58% =55%
The company has registered a decrease in its ROCE from the base year by 3% decrement rate.
The company should consider working on the reason for the decrease in ROCE to reinstate the
company back to the original state.
Gross profit margin = gross profit / sales revenue *100
2015 2016
(40,000/120000)*100=33.33% (50000/200000)*100=25%
Operating profit margin = operating profit /sales *100
(30000/120000)*100=25% (35000/200000)*100=17.5%
The (33.33% - 25%) = 8.33% decrease in gross profit is not good news for the
company. Itindicates a closer group between selling price and cost of sales. In 2016
Company’s cost of sales increased by comparing with 2015.However the operating margin also
decrease by (25% - 17 .5 %) = 7.5%. It indicate thatcompany expense have increased and may
require tighter controls.The company has registered a decrease in its ROCE from the base year
by 3% decrement rate. The company should consider working on the reason for the decrease in
ROCE to reinstate the company back to the original former state.
2.1: Recommend how to overcome the identified weaknesses in the business
Although Stratford will generate a higher customer base, commercial rent is relatively
expensive.The high rent cost should be covered by the larger expectance of revenue, due to
higher averageincome in this area, compared to a less populous area or a higher rent area, such as
Eastham. Locating the business on the Caffè Finixin Stratford will mean that there are limited

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parking bays, so our customers will face parking problems. To overcome this problem, the
business can rent a smallnumber of bays directly in front of the shop to ensure that customers can
access the business easier.
The business should expect a high inventory turnover rate due to raw materials having a short
expirydate. The business will use First in First out (FIFO) method for sale and stock
replenishment. Also aneffective restocking and reordering procedure needs to be developed to
maintain and supply the right amount of materials for daily operation. Quality control is very
difficult to achieve as the cupcakesand coffee will be made differently each time. To ensure
quality control, procedures will need to beestablished, ensuring the taste and decorations can
remain as similar as possible. The business idea is based on an increasing social trend, meaning
that if the trend does not receive well with Perth’s population the business could suffer a loss.
However because the business will also be a café, this will hopefully allow the business to avoid
too much turmoil due to a trend downturn.
The business idea is based on an increasing social trend, meaning that if the trend does not
receive well with Perth’s population the business could suffer a loss. However because the
business will also be a café, this will hopefully allow the business to avoid too much turmoil due
to a trend downturn
This provides evidence for assessment criteria 2.1
2.2.Analyses ways in which exiting business performance could be maintained
andstrengthened.
The Caffè Finix coffee shop uses a strategy of total quality in product and service. Our promise
is in our location, the products we sell, the people we attract and the atmosphere we create.
a. people want a better-tasting coffee drink
b. Coffee drinkers want a more inviting coffeehouse environment
c. Coffee drinks are considered an affordable luxury
d. the coffee shop industry is largely unaffected by the economy and world events
e. The star coffee shop offers several unique advantages over all other coffeehouses
The Caffè Finix coffee shop compared to the other coffeehouses in the Stratford area includes
thefollowing:
a. A significantly higher quality, better tasting coffee product

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b. Our current location can arguably be considered the best in the market in the heart of
the downtownshopping, dining, entertainment
c. An ambiance superior to all other coffeehouses in the area with upscale "Cote d'Azur"
look. Itfeatures stained glass decorations, art glasswork, Mediterranean Riviera style
furnishings and outdoor dining.
d. The only coffeehouse downtown to provide regular weekend evening entertainment.
e. A wider variety of popular drinks than our competitors, including flavored coffee
drinks, tea
f. An ambiance superior to all other coffeehouses in the area with upscale "Cote d'Azur"
look. It features stained glass decorations, art glasswork, Mediterranean Riviera style
furnishings and outdoor dining.
This provides evidence for assessment criteria 2.2
2.3. Recommend with justification, near areas in which the business could expand.
Our coffee shop is located in Stratford. Now we are suggest to open a new coffee shop in
London Cityairport. Because that is a very crowded area by travelers and workers .so that
business will success
a. The greatest locations - visibility, high traffic pattern, convenient access.
b. The best products - freshest coffee beans, premium serving containers, consistent flavor.
c. The friendliest servers - cheerful, skilled, professional, articulate.
d. The finest reputation - word-of-mouth advertising, promotion of our community
missionof charitable giving
This provides evidence for assessment criteria 2.3
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3.1. Produce an assessment of existing business objectives.
Objectives:
1. Become selected as the "Best Coffee shop in the area" by the local restaurant guide.
2. Maintain a 65% gross margin.
3. Consistently providing finest coffee items.
Caffè Finix coffee shop is achieved the first objectives in now. Because their daily
customer is500 perday. So the star coffee shop best coffee shop in Stratford area.
Caffè Finix coffee shop has:

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1. Provided a customer with quality product at a competitive price.
2. Provided the customer with a more convenient method for obtaining their desired
product
3. Demonstrated how star coffee shop appreciates their loyalty and patronage by
donating money totheir personal cause.
3.1. Produce an assessment of existing business objectives
Objectives:
1. Become selected as the "Best Coffee shop in the area" by the local restaurant guide.
2. Maintain a 65% gross margin
3. Consistently providing finest coffee items.
Caffè Finix coffee shop has achieved the first objectives in now. Because their daily
customer is500 perday. So the star coffee shop best coffee shop in Stratford
area.Consistently provide finest coffee items: CaffèFinixcoffee shop used the high
quality coffee beans to coffee and speed service to the customer. Caffè Finix coffee shop
has:
 Provided a customer with quality product at a competitive price.
 Provided the customer with a more convenient method for obtaining their desired
product.
 Demonstrated how star coffee shop appreciates their loyalty and patronage by
donating money totheir personal cause.
This provides evidence for assessment criteria 3.1
3.2.Revise business plans to incorporate appropriate changes.
The star coffee shop marketing strategy will be focused at getting new customers,
retaining the existingcustomers, getting customers to spend more and come back more often.
Establishing a loyal customer baseis of a paramount importance since such customer core will
not only generate most of the sales but also will provide favorable referrals
The star coffee shop position itself as unique coffee shop where its patrons can not only
enjoy a cup of perfectly brewed coffee but also spend their time in an ambient environment.
Comfortable sofas and chairs,dimmed light and quiet relaxing music will help the customers to
relax from the daily stresses and willdifferentiate the star coffee shop from incumbent
competitors
The star coffee shop barristers will handle the sales transactions. To speed up the
customer service, at leasttwo employees will be servicing clients--while one employee will be

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preparing the customer's order, theother one will be taking care of the sales transaction. All sales
data logged on the computerized point-of-saleterminal will be later analyzed for marketing
purposes.
In order to build up its client base, the star coffee shop will use banners and fliers, utilize
customer referralsand cross-promotions with other businesses in the community. At the same
time, customer retention programs will be used to make sure the customers are coming back and
spending more at the coffee bar.
This provides evidence for assessment criteria 3.2
3.2. Prepare an action plan to implement the changes.
Market Analysis
The Caffè Finix coffee shop focused the two markets
a. People living in the local area
b. Someone travelling to or from work, out shopping
Market segmentation
The Caffè Finix coffee shop focused its marketing activities on reaching the University
students and faculty, people working in offices located close to the coffee bar and on
sophisticated teenagers. Our market researchshows that these are the customer groups that are
most likely to buy gourmet coffee products. Since gourmetcoffee consumption is universal
across different income categories and mostly depends on the level of higher education,
proximity to the Stratford campus will provide access to the targeted customer audience.
Target Market Segments Strategy
The Caffe Finix coffee shop provide to people who want to get their daily cup of great -
tasting coffee inrelaxing atmosphere. Such customers vary in age, although our location close to
the Stratford college meansthat most our clientele will be college student & faculty. Our market
research shows that these are discerningcustomers that gravitate towards better tasting coffee.
Furthermore, a lot of college students consider coffee bars to be a convenient studying or
meeting location, where they can read or meet with peers without thenecessity to pay cover
charges. For us, this will provide a unique possibility for building a loyal client base.Market
needs General trend toward quality arecent growth in gourmet coffee. Additionally, such factors
as desire for small indulgencies, for somethingmore exotic and unique, provide a good selling
opportunity for coffee bars
This provides evidence for assessment criteria 3.3

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4.1. The impact of the proposed changes on the business and its personnel.
Businesses are affected by an external environment as much as they are affected by the
competitors. Globalfactors influencing business are legal, political, social, technological and
economic.
Economic Factors
These factors involve changes in the global economy. A rise in living standards would
ultimately imply an increase in demand for products thereby, providing greater opportunities for
businesses to make profits. An economy witnesses fluctuations in economic activities. This
would imply that in case of a rise in economic activity the demand of the product will increase
and hence the price will increase. In case of reduction in demand the prices will go down.
Business strategies should be developed keeping in mind these fluctuations. Other economic
changes that affect business include changes in the interest rate, wage rates, and the rate of
inflation. In case of low interest rates and increase in demand Businesses will be encouraged to
expand and take risks. Therefore, business strategies should have room for such fluctuations.
Technological factors
These factors greatly influence business strategies as they provide opportunities for
businesses to adopt new innovations, and inventions. This helps the business to reduce costs and
develop new products. With the advent of modern communication technologies, technological
factors have gained great impetus in the business arena.Huge volumes of information can be
securely shared by means of databases thereby enabling vast cost reductions, and improvements
in service. Organizations need to consider the latest relevant technological advancements for
their business and to stay competitive. Technology helps business to gain competitive advantage,
and is a major driver of globalization. While designing the business strategies firms must
consider if use of technology will allow the firm to manufacture products and services at a lower
cost. Firms can select new modes of distributions with the help of technology. It has become
easier for companies to communicate with their customer in any part of the world.Organizations
need to consider the latest relevant technological advancements for their business and to stay
competitive. Technology helps business to gain competitive advantage, and is a major driver of
globalization.
Social factors

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These factors are related to changes in social structures. These factors provide insights
into behavior, tastes,and lifestyles patterns of a population. Buying patterns are greatly
influenced by the changes in the structure of the population, and in consumer lifestyles. Age,
gender to mention among the many, which all determine the buying patterns andunderstanding of
such changes is critical for developing strategies which are in line with the marketsituations. In a
global environment it is important that business strategies are designed keeping in mind thesocial
and cultural differences that vary from country to country. Consumer religion, language, lifestyle
patterns are all important information for successful business management.
Legal factors
These factors that influence business strategies are related to changes in government laws
and regulations.For a successful business operation it is important that the businesses consider
the legal issues involved in a particular situation and should have the capability to anticipate
ways in which changes in laws will affect theway they must behave. Laws keep changing over a
period of time. From the point of view of business it isimportant that they are aware of these
changes in the areas of consumer protection legislation, environmental legislation, health &
safety and employment law among many others.
Political factors
This refers to the changes in government and government policies. Political factors
greatly influence theoperation of business. This has gained significant importance off late. For
example: companies operating inthe European Union have to adopt directives and regulations
created by the EU. The political arena has ahuge influence upon the regulation of businesses, and
the spending power of consumers and other businesses. Business must consider the stability of
the political environment, government's policy on the economy and many related factors to
mention but a few
This provides evidence for assessment criteria 4.1
4.2. Plan how the changes will be managed in the business
Employees:
People naturally do not like change, regardless of whether its positive or negative. The feeling of
fear,ambiguity, unknowns, loss of control and power, and the like result in people not feeling
naturallycomfortable with making a change that could potentially put them in a better situation.
These feelings resulting paralysis to act, and can often result in people acting irrationally and not
in the best interests of anorganization. So, with any change initiative is the absolute and

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mandatory requirement that the changeinitiators think through what the impact may be to the
employee population, who ultimately have to adapt tothe new changes in order to best serve the
customer.
Business:
 Competition (what are they doing and the impact it has on the business existence ?)
 Customer behavior (needs, wants, and desires in order for the business to attain their loyality)
 Industry outlook (local, national and globally )
 Demographics (the changein populations, there density distributions among other population
parameters.)
 Economy (are we peaking, or moving negatively towards failing )
 Political movements and/or interference from the influence of political regimes and powers
 Social environment ( the impact it has to the business and more specifically the effect on the
well-being of the business )
 Technological changes( which make the firm to keep in check with the trends)
 General environmental changes which affect the business and the other related businesses
This provides evidence for assessment criteria as required 4.2
4.2. Monitor improvements in the performance of the business with time-scale
Goals Period Review
One stop tradition End of 2016 Coffee, Coffee machines,
tea, water, and the perfect
ambiance and taste - all from
one source of production.
To be the best in local area By end of 2016 Company is fighting to lead
in business amongst all the
competitors in the marekt
Service At the end of fiscal year
2016
We strive to treat our
customers respectfully as
our guests; we intend to
offer our guests service that
is prompt, efficient, friendly,
and relaxed
Increase in number of
members in the loyalty
club
By the end of 2016 Customers to get more
closer to the company

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